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Updated for 2025/26

£12,520 vs £18,020 Salary Comparison

Compare a £12,520 salary against £18,020. Find out exactly how much more (or less) you will take home after tax.

Gross Difference
+£5,500
per year
Take Home Extra
+£331.17
per month
You Keep
72%
of the raise
5-Year Gain
+£19,870
cumulative

Entry-Level Career Progression

This comparison is typical for early career moves or first promotions. At this salary range, most of your income is taxed at the basic rate (20%), so you keep a higher percentage of any raise.

  • Negotiate hard - you keep ~70-80% of any increase at this level
  • Consider employers offering good pension matching (often worth more than small salary differences)
  • Look for roles with clear progression paths to higher bands
  • Factor in benefits like free lunches, gym memberships, or transport subsidies

Compare Salaries

Enter multiple salaries to compare take-home pay for 2025/26

£
£

Comparison Results

Metric£12,520£18,020Difference
Gross Salary£12,520£18,020£5,500
Income Tax£0£1,090£1,090
National Insurance£0£436£436
Pension£0£0£0
Take-Home Pay (Yearly)
£12,520
£16,494
£3,974
Take-Home (Monthly)£1,043£1,375£331
Effective Tax Rate0.0%8.5%8.5%

£12,520

Gross£12,520
Take-Home£12,520
You Keep100.0%

£18,020

Gross£18,020
Take-Home£16,494
You Keep91.5%

Tax Band Analysis

Understanding where your money goes

£12,520

Tax BandPersonal Allowance
Marginal Rate0%
Income Tax£0.00
National Insurance£0.00
Take Home (Monthly)£1,043.33

£18,020

Tax BandBasic Rate
Marginal Rate20%
Income Tax£1,090.00
National Insurance£436.00
Take Home (Monthly)£1,374.50

Tax Band Change: This salary increase crosses from the Personal Allowance (0%) into the Basic Rate (20%). The portion above £12,570.00 will be taxed at the higher rate.

What £331.17 Extra Buys You

Real-world value of the take-home difference

Monthly Subscriptions
Netflix, Spotify, gym - £100.00/mo
Weekend Breaks
1-2 UK getaways per month at this budget

Full Comparison: £12,520 vs £18,020

£12,520

  • Gross Pay£12,520.00
  • Take Home (Year)£12,520.00
  • Take Home (Month)£1,043.33
  • Effective Tax Rate0.0%

£18,020

  • Gross Pay£18,020.00
  • Take Home (Year)£16,494.00
  • Take Home (Month)£1,374.50
  • Effective Tax Rate8.5%

The difference in take-home pay is £3,974 per year, which works out to £331.17 per month.